World

Court Rejects Broadcasters' Attempt to Shut Down Aereo

In an important judicial victory for streaming television service Aereo, a federal appeals court on Monday rejected television broadcasters' attempt to shut down the service while their lawsuit against the company is decided.

The U.S. Court of Appeals for the Second Circuit in a 2-1 vote upheld a lower court's denial of an injunction request against Aereo from CBS, NBC, ABC and other top broadcasters who filed suit against Aereo last year on copyright grounds.

Aereo uses a series of small antennae to pick up broadcasters' signals and stream them to subscribers' computers or mobile devices via the Internet for a monthly fee. It's become a popular poster child of the "cord-cutting" movement, which champions alternative home entertainment solutions that replace expensive cable packages. It's also become a thorn in the sides of broadcasters, who claim in their lawsuit it violates copyright on their content (Aereo does not pay to broadcasters any retransmission fees).

However, the appeals court found that because each Aereo subscriber pays for access to an antenna, the service does not constitute a "public performance" under copyright law. Thus, the court decided the broadcasters failed to show in their injunction request "that they are likely to prevail on the merits of this claim in their copyright infringement action," and the motion was dismissed.

Aereo is currently available only in New York City, but the company is planning a 22-city expansion this spring — an expansion which has just become a little less stressful given the court's ruling. The broadcasters' suit, however, will continue: The appeals court merely rejected a motion to force Aereo to cease operations while the case is heard.

The text of the court's decision is embedded below. Is Aereo violating broadcasters' copyright on content? Would you sign up for the service if it became available in your neighborhood? Share your thoughts in the comments below.

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